By David Ornstein

Vaughan (left) and Broad celebrate the wicket of Stephen Fleming

England will need four wickets on the final day to level their Test series against New Zealand after reducing the Kiwis to 242-6, chasing 438.

Ross Taylor (55) and Matthew Sinclair (39) shared 81 but Ryan Sidebottom (3-72) and Stuart Broad (2-38) raised the prospect of a quick England win.

However, Tim Ambrose missed a chance to stump Jacob Oram on a day when four catches were put down.

Oram fell near the end but Brendon McCullum (43no) was still there.

Interview: England's Stuart Broad

He and captain Daniel Vettori offer the host's only realistic hope of making the 196 runs required for an improbable victory, which would break the world record for a successful fourth innings run chase.

But all indicators point to a win for England, who received a boost before play began when James Anderson came through a fitness test on his twisted left ankle.

The 25-year-old showed no ill effects as he joined Monty Panesar at the crease and helped add 16 to the tourist's overnight total until Panesar was taken well by Taylor at second slip off Chris Martin.

New Zealand needed to surpass the highest winning total made at the Basin Reserve - 277 by Pakistan in 2003 - and the highest of all time, the 418 achieved by West Indies against Australia in 2003 in Antigua.

England celebrate the crucial wicket of in-form Ross Taylor

They made the worst possible start when Jamie How, who looked far from comfortable amid the swirling Wellington winds, nudged the first ball of Sidebottom's fourth over to Ian Bell at short-leg.

Sidebottom continued to threaten during a highly disciplined spell which kept Stephen Fleming, bidding farewell to his home ground, quiet.

The former Black Caps skipper escaped when Ambrose failed to collect an outside edge off Paul Collingwood's first ball but Broad ended his stay at the crease during a fine spell after lunch.

First to go was Bell, who was spilled by Collingwood at second slip before nicking one behind and four balls later Fleming left one which nipped back and dislodged his off-bail.

Sinclair and Taylor played a number of high-risk shots to advance the score and no sooner had the 50 partnership been posted then it should have been broken.

Sidebottom saw Sinclair put down by a diving Cook at gully and Kevin Pietersen inexcusably dropped Taylor, who miscued a hook off Panesar.

McCullum arguably represents New Zealand's last hope

Sinclair did drive Anderson tamely to Bell at short cover but New Zealand continued to profit from England's awful fielding.

Taylor closed in on his 50 when Broad let his drive to deep backward point slip through his fingers for four, and the 24-year-old notched his second half-ton of the match with a stunning drive square of the wicket.

Fortunately for England, Sidebottom came to the rescue, trapping the in-form Taylor plumb in front of his stumps, but the catalogue of errors continued to grow.

Panesar, who himself had a poor day in the field, deceived the advancing Oram only for Ambrose to fumble a straightforward stumping opportunity.

With the light fading, and after a previous short delay for bad light, Vaughan opted to take the new ball.

Crucially, Sidebottom had Oram taken by Pietersen at second gully to break a stubborn partnership with McCullum just before bad light ended proceedings 15 minutes early.

• Oram has been fined 20% of his match fee after being found guilty of dissent for his reaction to being given out on day two of the second Test.